MUFG taps Israeli AI to hunt for Asian unicorns
Japan's MUFG Bank will use artificial intelligence to screen Asian startups for financing, looking beyond balance sheets to forge relationships with promising businesses who otherwise may not yet qualify for bank loans.
MUFG Bank will launch a 50-50 joint venture in Singapore with Liquidity Capital, an investment fund based in Israel that has a track record of incorporating AI into its operations. The venture will house a $80 million fund, financed entirely by MUFG Bank, which will start operating by the end of the year.
The fund will finance e-commerce, education and health care startups. Using AI, the fund will analyze companies' bank accounts, subscription numbers, accounting data and other information to screen them for loans. Such a comprehensive screening process is still rare, MUFG Bank says.
Startups often fall into the red as business expands. Because banks usually make decisions on loans based on corporate balance sheets, this makes it difficult for them to receive financing.
MUFG Bank, a flagship unit of Japanese megabank Mitsubishi UFJ Financial Group, hopes that its new AI-based operation will help it cultivate relationships with up-and-coming businesses in Southeast Asia and India early on.
The group is already working on expanding beyond conventional banking in emerging Asian markets. MUFG Bank is investing about 78 billion yen ($740 million) into ride-hailing startup Grab as early as this year, and will launch joint, smartphone-based financial services.
Liquidity is the world’s leading pioneer of bespoke technology for private credit, powered by advanced infrastructure with AI at its core. It defines a new standard in capital allocation through a nexus of the sharpest minds in private credit and technology.
Proven at scale in Liquidity’s own multi-billion-dollar private credit business, this technology deploys capital faster than any firm in capital markets history—with unmatched speed, precision, and adaptability across North America, Europe, APAC and MENA.
Liquidity develops bespoke technology infrastructure for banks and asset managers, embedding intelligent decision science across the full credit lifecycle from origination to compliance, while serving visionary growth-stage and mid-market companies in 45+ sectors through its own structures and funds.
Built on trust and backed by leading institutions including MUFG Bank Ltd., Spark Capital, KeyBank, Cross River Bank, Meitav Dash, IDB Bank, and others. Visit liquidity.com.
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